ORCL Stock At Nearly 2-Month Low: 'Big Red' Reportedly Trimmed Workforce By 13% In FY26 On AI Efficiency

• Oracle shares declined on Monday, extending their sharp decline in recent weeks.
• As many as 196 ‌tech ⁠companies have laid off more than 119,800 workers so far this year, according to layoffs.fyi.
• Stocktwits sentiment for ORCL remained ‘bearish.’

Oracle Corp reduced 21,000 full-time roles in its last fiscal year, which ended in May, citing organizational efficiencies brought on by the use of artificial intelligence, according to the company’s annual report issued on Monday.

ORCL stock declined 5% on Monday and slid a further 2% in the after-market session.

Oracle’s workforce shrank 13% to 141,000 as of May 31, and the company spent $1.84 billion in severance payments and ​other exit costs related to the restructuring activities in the year. The figure was significantly higher than the $374 million spent in fiscal year 2025.

The workforce adjustments were also ​in response to various factors, including management and product changes, performance issues, strategic shifts and acquisitions, Oracle said.

Major tech companies, including Amazon and Meta Platforms, laid off thousands in recent months as tech layoffs continue into 2026. As many as 196 ‌tech ⁠companies have laid off more than 119,800 employees so far this year, according to Layoffs.fyi, a site that tracks job cuts.

ORCL’s Business Booms, But Stock Trails On Debt Concerns

A smaller player in cloud computing, Oracle has recently landed several large data-center agreements with OpenAI and Meta, strengthening its push to challenge industry leaders such as Amazon and Microsoft.

Oracle’s remaining performance obligations (RPOs) surged 363% to a record $638 billion, surpassing those of both Alphabet and Microsoft as well as Oracle’s own market capitalization.

That has triggered a rapid debt-fueled capacity expansion at the ‘Big Red,’ which has left some investors concerned over high leverage and reliance on a handful of customers.

Last month, Oracle said it would raise $40 billion in debt and equity in fiscal year 2027, after raising $43 billion in debt and $5 billion in equity last year. Oracle’s total liabilities, including debt, jumped by 48% to $218.7 billion in the fourth quarter – the sharpest surge on record.

Retail View On ORCL

On Stocktwits, retail sentiment for ORCL remained ‘bearish,’ unchanged from the prior day, while 24-hour message volume jumped over 500%.

“$ORCL We all know this is going up. They are way ahead of anyone else and will be easily $400+ within 1-2 years. If OpenAI goes public at the end of this year that is a massive catalyst,” another trader wrote, underscoring the view that Oracle’s fortunes are increasingly tied to the AI company’s.

ORCL stock is down 30% from its all-time high and 10% year-to-date. Shares are under pressure amid a renewed selloff in software stocks as investors turn to semiconductors.

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